Procurement and Contract Law
ASSIGNMENT 5: PROCUREMENT LAW OVERVIEW, PART TWO
Introduction
In this paper, I will summarize the clauses for “Payments Under Fixed-Price Construction Contracts, Government Delay of Work, Contract Terms and Conditions with reference to Commercial items, distinguish between the various types of contracts and their use and compare and contrast termination for default and termination for convenience.
Payments under Fixed-Price Construction Contracts
The government should pay the contractor the exact contract price as specified in the contract. The government should also pay the contractor monthly precisely as specified in contract, or, if not monthly, according to details of contract as long as the work meets the details of quality that have been established by the Contracting Officer and are delineated in the contract.
The Contractors requests for progress payment needs to meet the following requirements: an itemization of the amounts requested related to the various elements of work covered and outlined by the contract; details of the amount included for each work performed by each subcontractor; A record of the total amount of each subcontract; record of previous amounts paid to each subcontractor; and additional relevant information. In other words, the records should obtain information regarding payment and requested payment of each contractor and all relevant details of the money spent and requested.
When preparing estimates, the Contractor may also authorize details of preparatory work and material delivered on the site. Work material delivered to other sites may also be included in assessment of payment records as long as: consideration for this other material were originally taken into account by the contract and the contractor shows that this material is necessary for fulfilling the requirements that have been delineated by the contract. The contractor needs to show evidence on each count.
After providing satisfactory and thorough itemizations and explanation of each itemization of how money has been spent, the Contractor needs to sign a statement that testifies that the record is true according to his knowledge of what occurred. Once statement has been signed, payment can be made.
An example of this application is someone who has been hired by the Government to construct the new buildings that would be erected on the spot of the original Twin Towers. This involves a tremendous amount of resources and necessary materials all of which must be itemized and thoroughly recorded to make sure that they correspond to budgetary requirements and allocation. If work requires more than what was originally delineated, a detailed explanation reinforced with evidence that supports the requirements must be submitted. All of this must be noted and itemized. The contractor then